Well, if the question – how to earn a lot of money on Forex and whether forex trading is profitable, is not the first Forex trading question to all beginners then I do not know what it is.
I had the same question when I saw the ad about Forex trading online. I have looked where to invest my savings and get the fast results with high returns.
The problem was to find something and then the Forex trading appeared. And then again another problem shown up.
- How much I can earn trading Forex?
- Whether Forex trading is profitable
- Is it possible to earn more money on Forex than investing in stocks?
- Can I live from the earnings?
- Maybe I can leave my daily job?
I will explain to you in this post is it possible to earn a lot of money on Forex whether forex trading is profitable and what steps you should do to get there.
The first step starts here with this post so read it all till the end and then read again until it sticks into your head.
- 1 Have a Plan to Make Forex Trading is Profitable
- 2 What do You Need to Know to Make Forex Trading Profitable
- 3 How Much Can I Earn by Trading on Forex
- 4 How Much Money do Other Traders Earn by Trading on Forex
- 5 Emotions Prevents You Making Forex Trading Profitable
- 6 Trading Strategy is the Path to Make Forex Trading Profitable
- 7 Conclusion
- 8 FREE WORKSHOP
Have a Plan to Make Forex Trading is Profitable
Your plan should be to write down steps that comes into your mind and which you find here. Use that paper with those steps and stick the paper on the wall where you will see it all the time.
It should remind you and to guide you in the right direction. When you turn in wrong direction the steps on the paper should correct you.
The problem you will face during the trip where you earn a lot of money on Forex is that you will forget what is important, what is crucial to succeed.
But, you are human and you make mistakes.
That is normal.
But you also can make you even better than you are right now and you can prevent that from happening.
Let’s start with this topic.
What do You Need to Know to Make Forex Trading Profitable
If you are not trader up to now and you just start to learn how to trade, this post could be a little bit hard to understand. Nevertheless, you should read this because it is good to know this stuff at the start.
Earning a lot of money by trading on Forex and making forex trading profitable is possible and requires certain steps from you to take to get on the right track.
Those steps requires that you define what is a lot of money for you. Is that on monthly basis $1,000 or more. When you define this step you will know what is necessary to do as a next step.
The amount of money you define will give you the information how much time you will need to spent trading to earn a lot of money on Forex. Time is one of the important things in trading on the Forex market.
You need time to trade and to get the desired results. But to get the results, positive results, you need to know how to trade.
And here the problems starts to show up.
Problem is Knowing How to Trade
To earn a lot of money on Forex, and I mean a lot, you need to know how to trade. How to trade positively is not so easy as maybe something else in our life.
Doctor does not become a professional in his field after college. He needs time to get experience and to learn how to react in different situation which were not written in the books. The situations he never met on college.
You need to invest time into learning to be professional trader. The experience you get through time is something no one can give you right now.
When you learn how to be trader and be positive in your trading you can set your expectation on any level you want.
How to Set Up Expectation
Let’s say you are a trader with trading strategy that is profitable. After a week or a month when you draw a line, your account balance is positive.
Now, if you invest $100 on you account and you start trading with that money, you can expect that you will earn some money at the end of a week or a month.
If you have profitable strategy that gives you 5% each month then you would earn $5 on your $100 investment. Even though that is not a lot of money do not be disappointed.
The thing is, important is in 5% that you can earn each month.
Why is this important?
It is important because if you can earn 5% on $100 then you can earn 5% on $1,000 or $10,000.
If you earn 5% on $1,000 that is $50.
If you earn 5% on $10,000 that is $500.
How Much Can I Earn by Trading on Forex
To give you a small overview how much money you can earn by trading on the Forex here is example:
- You have a strategy that gives you 10% per month
- You invest $100
- Monthly earning is $10
- You invest $1,000
- Monthly earning is $100
- You invest $10,000
- Monthly earning is $1,000
- You invest $100,000
- Monthly earning is $10,000
- You invest $100
To give you answer how much can you earn by trading on Forex is easy. You can earn any amount you imagine and become profitable in Forex trading if you have profitable strategy that gives you positive result after certain period.
Is that period one week, month or a year it does not matter because you are profitable. Which ever initial balance you put on your trading account you will define how much money you will earn at the end of the certain period.
Do not forget another important thing in this story. That thing is the amount of money you invest on your trading account.
How Much Money do I Need to Invest
The amount you need to invest on your trading account depends on you. If you invest more you will earn more if you follow trading strategy where you earn 5% per certain period.
Understand trading on Forex like a business where you need to give money in order to get the money.
In each business you need to invest some of your money to start business rolling and to get something in return.
Same thing is in Forex. Trading requires that you invest your money which you will use to increase by trading.
If you have a trading strategy with 5% return per month you can calculate how much money you need to invest.
How Much Money do Other Traders Earn by Trading on Forex
Big dogs, the traders or companies, that trade with large amount of money have large initial balance. They are hunting for few percentage per month and around 5-15% per year.
They are controlling several hundreds of millions and for them few percent is enough to have large profits.
For small traders, retails traders, who have $100 or $500 initial investment, small return like 5% is not so much and they hunt for more. They hunt for 20%-100% or even more in a month.
But to get there and earn that large percentage you need to be professional trader with exceptional trading skills. Those skills are something you can have in time through experience.
One of those skills are emotional balance where the trader resist to get influenced by the impacts on his psyche to over trade and over size his trades.
Emotions Prevents You Making Forex Trading Profitable
Emotions are one thing that have large impact on the trading result. You can read all over the Internet about greed and fear that impacts trading results.
And it is true.
Greed is one of the worst emotions because it impacts on your trading decisions. Your greed to become rich very quickly messes with your head and make you a losing trader.
You start over trading and over sizing just to reach 100% gain in a few days on your $100 trading account.
If you are already a trader you understand what means when you open a trade without stop loss with large volume. You have order open and then the trading price of the currency pair starts to move against you. You lose all the money with that one trade.
Or, when you close a trade with profit and you jump into the next trade with even higher volume, and of course without stop loss. You want more money with the next trade because you see it is so simple and easy.
And then again price reverses against you and you lose all your money very fast just with few pips.
To earn a lot of money on Forex you have to avoid being influenced by emotions. You have to be consistent in your trading that is backed up with trading strategy that will help you avoid emotions in trading.
Trading Strategy is the Path to Make Forex Trading Profitable
Trading strategy will help you earn a lot of money on Forex and make Forex trading profitable through rules and steps how to open and close the trade and with which risk.
Two parts of the trading strategy is to have trading plan with strict rules when and how to open the trade. Rules will confirm is the trading signal the correct signal to enter or you need to wait for the next one.
Second part is risk management which is only there for you to save you money from yourself. Risk rules will define how much you can lose on each trade. How much you should win on each trade.
When you sum up all your trading results you need to be profitable. The only goal in trading is being profitable.
That why is important to have trading strategy that have trading plan and risk management plan.
To earn a lot of money on Forex is easy and hard but doable. You can succeed but you need time and energy to get there.
Earn a lot of money on Forex is possible but it is also possible to lose a lot of money on Forex. Lose money will be much easier than earning money because you have desire to make money and you will try too hard. That desire will guide you in the wrong direction if you cannot resist being greedy.
If you resist enough to bad emotions the reward will be huge. You can earn a lot of money where the sky is the limit.
If you want to get there you need to persistent, patient and disciplined with trading strategy. That is the road to success. Check the ultimate guide Forex trading for beginners.
For beginners who does not know how and where to start with trading
In the workshop I will tell you
what steps to do in order
to transform yourself into a trader